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As marketers continue the uphill struggle to ignite consumer spending during this recessionary economy, not everything should be gloomy. Recessions have historically instigated certain business corrections that fuel innovation and creativity.

Additionally, many of the brands that have weathered the test of time have been those that continued business as usual during rough times. They took advantage of their competitors’ retreat and invest to extend their market share. To a certain degree, that’s when leaders are made to last.

Many brands are looking at international markets. There are also some golden spots at home. A unique opportunity currently exists to increase the investment in the Hispanic market, which constitutes a domestic emerging market.

Here are some reasons why you should engage the Hispanic market:

• Already at 15% of the population, the nation’s largest minority is fueling over half of the population growth during the next ten years
• The Hispanic population is also, on average 10 years younger, allowing you to also make a strong impact in seeding market share with both a current and future consumer base
• Hispanics are perfect for pilot marketing programs. They are more centralized geographically and with least costly consumer acquisition costs including media, it’s more practical to engage them then other groups.
• On average, the average Hispanic family is bigger and is supported by a larger extended family allowing them to lend a hand to jointly manage difficult budgets as a result of the economy.
• Focused on quality as part of their
• Finally, U.S. Hispanics, strongly connected to their home countries, can also serve as a gateway for international expansion into emerging markets such in Mexico and South America.

So. Go ahead and say “que tal” to this local emerging market.

Latinos have accounted for over half of the population growth in the US for the past ten years, according to a recent study by the Pew Research Center.  An interesting observation regarding this study is that, unlike the past, the growth is being driven primarily by Latinos born in this country.

What does this mean for marketers? Besides the obvious opportunity this group presents, this data shows that there is specific potential for those brands addressing the needs of young parents as well as children. Pay close attention maternity clothes makers, children’s product manufacturers and marketers.

As the economy doldrums set in and few Americans can afford the luxury of that new car, computer upgrade or even that new flat screen TV, it’s the little things that we will rely on to make us happy. It’s a special lunch at our favorite place, a latte indulgence that feels like a hug. It’s Pizza and a movie. It’s take out or a drive-through pick up.

Euripides said: “When a man’s stomach is full it makes no difference whether he is rich or poor.”

This may explain why, although most consumer spending is down, the NRA forecasts that snack and non-alcoholic beverage shops including McDonalds, Starbucks, Dunkin’ Donuts and Jamba Juice, are expected to post growth. And while most retailers are down, Walmart and Costco are posting growth. Surely this must have something to do with their reasonably priced grocery departments.
So, how can we up-sell this concept while ensuring consumers will continue to see value in the experience and in the time and energy saved by dining out?  Here are some simple truths that may go a long way to providing that “extra value’ customers are seeking.

Pamper your customers.
When times are tough and winter is coming on in more ways than one, we all have a basic need to be pampered and taken care of.  This is fulfilled when one dines out, no matter how simple the experience may be. Now would not be the time to skimp on quality of the product or cleanliness of the store. Details like courtesy, greeting your customers by name, overall atmospheric warmth and free samples can go a long way to making them feel welcomed.

Motivate your employees.
Delivering value in an economy where raw food costs are going up, and prices are not, is a tough prospect any way you look at it. Many restaurant and franchise owners are asking how to best build morale when they can’t give their staff a raise or worse, they have to ask them to take a cut. continue reading “Salty Satisfaction. It keeps us happy.”

At a time when pockets are tight, the general alarm regarding economic decline has given rise to a number of concerns for new-age marketers. A slight edge, a propitious insight, can now make the difference between bankruptcy and billions. This has marketers across the nation scrambling to develop new strategies in a evolving media-scape that they don’t quite understand how to best use, in an effort to gain even an inch.

What marks this economic downturn as unusual are its unique recipients. The Millennials. This generation of brethren, brothas, bros, is the crème of the crop, the best ones yet. Larger (in number) than the Baby Boomers, more well-connected than Oprah, and smarter than you imagined young people could ever be, the Millennials are almost too cool to be true. Born from the early 80’s  to the late 90’s they grew up between the 1990s and 2000s.

This generation of technology-bred, media-soaked, and information-thirsty youth is a class apart, saving wildlife, going ultra-green, and rescuing underprivileged orphans in their spare time. They have not known an era without computers, cell phones or CD’s. They are “the empowered generation” that take information for granted, and make more demands upon what companies can and should offer. Unlike their Gen X predecessors who invented the term “reality bites” Millennials are idealistic and truly believe they can make a difference.

Known as the overachieving, go-getter types, and booked ‘til dinner with extracurricular every day of the week, Millennials have a lot on their plates, at all times. In fact, with today’s MacBooks, Blackberries and the like, Millennials manage to do it all: graduate in greater numbers than ever, score higher on the SATs, volunteer in third-world countries, march against pollution, and somehow still have time to keep in touch with friends in Beijing, Barcelona, and London. It often seems that the more they cram onto their plates, the hungrier they become. They are the “insatiable generation.” This is the live-strong generation, the generation that propelled Barack Obama’s candidacy into a movement.

Socially Millennials are changing the way people keep track of each other, as many feel the more friends they have, the better. The average number of friends for a young American in the 1980s used to range between 5 and 50, whereas the average Millennial today has peers they actively keep in touch with numbering up and beyond the 300 range. More peer-oriented than ever, they constantly chat with friends around the world, having long ago disregarded distance as an obstacle. AIM, MSN, Facebook, MySpace and hundreds of other chat media make it possible to gain perspective into the lives of those sitting thousands of miles away in the blink of an eye. For them, foreign countries the homes of their close friends or family, countries they’ve read about or studied abroad in.

Their own ethnic diversity in population only increases this cross-cultural interaction, as about 20% of Millennials have at least one immigrant parent, and four in ten Millennials are Latin-American, Asian-American, African-American, or of mixed ethnicity. Millennials consider themselves to be informed, empowered citizens of the world; and they are, more than any other generation has ever come close to being so. They understand the power one person can wield online; The big picture behind a single event; They are savvy know-it-alls (especially irritating to technologically challenged Gen-X’ers) and they are coming soon to a work place near you. As consumers they are incredibly selective and informed. They see through brands with X-ray vision, demanding substance beyond the hype.

One could stipulate that the only way to ingratiate them is to tap into what brings them together delivering on multiple platforms messages of innovation, universal coolness and good citizenship. Win over the Millennials, and you’ve won the race. Capture the hearts, minds, and wallets of these not-so-naïve youth, and you’re set for the long term.
Millennials care about what you’re doing for the environment and for world hunger and peace and on top of that they’re still interested in what you can do for them. The good news is, for better or worse, they don’t hold back. Establish a dialogue with them and they’ll quickly let you know exactly what they want.

I’ve always had a good gut. When I was 5, I thought it would be a wonderful idea for a chain restaurant that JUST served fries. When I was 13, I couldn’t understand why places like Walmart or Target didn’t have fashionable teen clothes. Why everything “cool” was super expensive. Why gum, couldn’t help whiten or clean teeth. Now all of that has changed and I see that, I wasn’t crazy, I was just ahead of my time. There are a couple of more ideas that I have that I would like to put on the table. The business development of such enterprises is a bit beyond my area of expertise, yet as I would truly love to see these ideas come to life, I’m sharing. After all I can’t do them all and I would love to see them happen. If you’re reading this and know how to make these ideas happen feel free to ring us up for ways we can help.

1st: PureFeet: A business model that combines holistic foot spa treatments with podiatry, with a podiatrist on site to take a look and prescribe treatments as needed. continue reading “Billion Dollar Ideas.”

How and when did brands get so small? It seems that despite the greater availability of tools and engaging media to connect brands with consumers, the impact of brands on society has greatly diminished. Why are the trillions of dollars currently spent on marketing only getting us “Paris Hilton” brands instead of timeless “Liz Taylors?” It seems that this past decade’s media revolution has empowered consumers while making brands more insecure.

Brands that want to be leaders must learn how to lead. They must facilitate what we call “branded movements” – or powerful collaborative statements with non-traditional groups such as grassroots organizations and influencers resulting in powerful brand communities. How do branded movements begin?

Brands should first adopt a more assertive attitude with regards to the roles they can play in society. They should not be afraid to ask themselves how they can change the world. This type of weighty question will naturally guide your brand to true values and give clarity, edge and purpose to your branding strategy. Plus, doing so will also bring you closer with a stronger base of consumers that are already asking themselves that very question of the brands they embrace.

A growing number of examples of branded movements is feeding consumers’ appetite for brand meaning, including General Electric’s “Eco-magination,” Lance Armstrong’s “Live Strong,” Dove’s “Real Beauty”, and Bono’s Red Campaign. At the core of these initiatives is a brand becoming human, inspiring through values, and then building communities through stories and interactions through imaginative use of creative and media.

“Branded movements,” work because they give everyone involved a sense of purpose around the brand and its values. They are also powerful because they allow to brand to touch upon society’s big shifts as well as the themes impacting the day-to-day decisions of individuals and families. The brand becomes both symbolic and relatable, inspirational and accessible. It is then, by being truly a part of consumers’ lives that our shrinking brands can become big again.

Many fashionistas talk about the stimulating and soothing effect of shopping when one is not feeling too fancy. The ladies in “Sex in the City” have become the ultimate symbols of this state of mind. But what happens when the carefree shopper is hit with a not so light case of dwindling disposable income and credit, as is currently the case across America. How should retail brands respond when people start putting the breaks on how much they are spending for clothes? It seems the fashion and retail categories need some retail therapy of their very own.

While a recession is not good for anyone, the limitations it engenders can motivate brands to become more focused on what they provide their consumers. By weathering the storm with a smile, a touch of class, and a lot of ingenuity, retail brands can fuel an evolution that will take them to new heights once recessionary waters subside. So retail brand managers: stay positive that better times will return, and in the meantime, work to find more creative and nuanced ways to connect with shoppers.

One of the most important lessons to remember when selling during a recession is that this unique confluence of economic variables presents a good time to remind your consumers about your unique value proposition. By doing so, you dispel the uncertainties of a recession, with the certainty of choosing the right brand for them.

continue reading “Retail Therapy for Recessionary Times”

The artists that are shaping our culture today can no longer be limited to the art gallery and the museum. Today’s artists are broadcasting their work all over the world on screens large and small. They are fluidly migrating back and forth from the art and commercial worlds. Brands like BMW, Adidas, Scion, Louis Vuitton have created clear points of view that they now own as movements. This comes as art has become mainstream and as consumers and the art establishment encourage mixing and matching. It’s fair to say that commercialism and new technologies have shaken up the art world. But this was not always so.

During most of the latter part of the twentieth century, figure art and craftmanship lost its perceived value as the art-buying elites took their acquisition cues from the prevalent mood among critics and artists such as Duchamp. “Traditional” artists, then, went into the more lucrative, less subjective worlds of commercial Art where an image needed to tell a clear story.

continue reading “Business Art is happening now”

These days the latest Olympic scandal is a print ad for a courier company, official sponsor of the Spanish Basketball team, where Spain’s Olympic basketball team players appear stretching the skin on either side of their eyes for an Asian slant with sheepish grins on their faces. That add seems to say “look out Chinese people, here we come!”
The two full-page ads have been running since August in the Spanish sports newspaper Marca. Nobody in Spain noticed anything “inappropriate” until a British newspaper showcased it yesterday.

“Spain’s Olympic basketball teams have risked upsetting their Chinese hosts by posing for a pre-Games advert making slit-eyed gestures.” Wrote Sid Lowe for The Gaurdien. “The failure to recognise the potential consequences is striking in the light of the problems Spain has had with issues of race…”

I am sure the Creatives behind the campaign had no intentions of offend anyone with this ad, nor could they distinguish any offense in it.
It’s an interesting cultural contrast, which is worth examining. continue reading “The Un-PC basketball team”

I-phone : You-cardboard

You think the future of mobile phones is the all in one i-phone? Well seems there’s a California company that thinks a painlessly disposable, super lo-cost cell-phone made of cardboard is the future. While with the I-phone you’re tied to AT&T, with the cardboard phone you’re –sort of- free, or at least you don’t have to pay one of those horrendous penalties if you decide to change companies. Minutes are charged from a pre-paid card, no matter what network is behind your calls. This is great news for tourists, or people who want to keep track of their cell-phone expenses on a business trip. But unfortunately in the US if you want a fancy phone you have to have it locked to a network. You can bet the idea of an unlocked i-phone makes AT&T tremble!

The European Wireless freedom:

What does a “locked” phone mean exactly? It means you are locked into a given system, and often times it feels like you made a deal with the devil. Europe has lived a free wireless life from the beginning, since the wise European Union forced all the network systems to unify from the start. So over there you can buy a cell-phone while in a network and move the device with you if you change your carrier. Really!!

For the US consumer the advantage has been that the cost of the phone itself has been greatly reduced, subsidized by the wireless carrier. So as soon as you get bored with one model you can move to another for a reasonable amount not even close to the real value of the device. That’s if you keep it in the same network. If not the Penalty Monster gets you and that, for some, it’s something that goes against all good old rules of capitalism.

California rules:
But wait there’s hope! A few days ago a preliminary California ruling stated that Sprint Nextel must pay consumers in California $18.2 million from a class-action lawsuit that challenged these “early termination fees,” and that the company must stop trying to collect the $54.7 million they are seeking from other customers who haven’t paid they early termination charges.

There’s a big possibility this ruling may extend to other states. Maybe very soon we’ll move into a network free wireless world in the US too. If that’s the case, it will very likely be the cheap cardboard cell-phones that turn out to be the big winners.